Google Inc. (NASDAQ:GOOG) answers Facebook’s (NASDAQ:FB) Instagram purchase by acquiring Nik Software, which is known for developing Snapseed, a $4.99 iOS photo-editing application that receives rave reviews. The latter surpassed the 9 million customer milestone in June, and will be integrated with Google+ if plans go as expected.

Shutterfly, Inc. (NASDAQ:SFLY) buys Penguin Digital, which developed an application that enables users to order prints and purchase other photo-related products via their phones. The buyer’s photo solutions unit is built around the same line of services, and both will re-brand Penguin’s application and merge it with its current mobile lineup.